The speed at which a business success is recognized, furthermore, is not that important as long as the company's intrinsic value is increasing at a satisfactory rate. In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.
Interpretation
Business success should be measured by intrinsic value rather than speed of recognition.
Warren Buffett emphasizes that the recognition of success in a business does not matter as much as the growth in its intrinsic value. He argues that delayed recognition can actually be beneficial, allowing investors the opportunity to acquire valuable assets at a lower cost before they are fully appreciated by the market.
In practice
Use this quote in a presentation about long-term investment strategies.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
I cannot give you the formula for success, but I can give you the formula for failure - which is: Try to please everybody.
As I started to consider a career in music, I hoped for success, truthfully. I didn't imagine anything that would amass the level of the first record, but I hoped that I would be able to sustain a career.
A relentless focus on the outward markers of success can lead to complacency. It can make you lazy.
Money is a short-term result that incentivizes short-term decision making.
I think if you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what's next.
When I was 14, I did all kinds of different odd jobs. I had a chicken farm, had an ice cream operation in the summertime, worked as a caddy; all things to make money and save money. Save money in order to invest - that was the first step, though I never really accumulated very much because of other demands like bicycles and things like that.
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